MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
Bharti Airtel Revenues Rise but Profits Fall
India's Bharti Airtel has reported that its revenues for the three months ended June 30, 2011 jumped by over a third (38.6%) to reach Rs 16,975 crore (US$3.8 billion)
Africa continued its upward trend with revenues of US$979 million. India & South Asia sustained double digit revenue growth (Y-o-Y 11.9%), while sequential revenue growth was 4%. Consolidated EBITDA margin was maintained
Net profits however dropped by 28% to Rs 1,215 crore (US$273 million) compared to Rs 1,682 crore a year ago.
The company attributed to the decline mainly on account of: higher interest charges (Rs 344 crore) caused by the Africa acquisition and 3G investments in India, and 3G license fee amortization (Rs 159 crore).
In a statement, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said "Bharti Airtel has started this fiscal year on a stable note. Revenue growth has been steady across all geographies, with Africa recording a healthy sequential growth of approximately 6%, and annual growth of 21%. In India, the Company's efforts in the area of cost efficiencies have helped arrest the margin decline. The new customer facing organization in India will see more agile and responsive teams in action. This will also give a fillip to growth in value added services, broadband, digital TV and airtel money. Overall, 2011-12 promises to be an exciting year of transformation".